For accounting purposes, the most important section of the articles of incorporation is the description of:
A)the shares to be issued.
B)the type of business to be conducted.
C)how the board of directors will be organized.
D)who will make up the management.

Question

Quizplus · Accepted Answer

The section describing the shares to be issued is important because it outlines the ownership structure of the company and the rights and privileges associated with the different classes of shares. This information is critical for accounting purposes, as it affects how the company's financial statements are presented and how shareholders are compensated. The other sections listed are also important, but they are not as directly relevant to accounting.

For Accounting Purposes, the Most Important Section of the Articles